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Record December Inflows Propel Ethereum Spot ETFs Ahead of Bitcoin

Ethereum spot ETFs just had their biggest month ever, attracting over $2B in December. Did the flippening already happen in the ETF world? Bitcoin spot ETFs are starting to look over their shoulder as ETH products gain ground. Find out which issuers are leading the charge and why some think this Ethereum surge is just getting started...

In a watershed moment for the crypto industry, Ethereum spot ETFs have overtaken their Bitcoin counterparts in terms of investor inflows. December 2024 saw an astonishing $2 billion pour into ETH-based exchange traded funds, marking a new milestone in Ethereum’s rise to prominence in the world of regulated crypto investment vehicles.

The Flippening Comes to ETFs

For years, Bitcoin has dominated the crypto ETF landscape, with BTC futures-based products being the only game in town. But 2024 saw a major shift, as both Bitcoin and Ethereum spot ETFs gained regulatory approval in the US. While Bitcoin spot ETFs came out of the gate strong, it’s Ethereum that’s finishing the year with a bang.

December’s net inflows of over $2 billion into ETH spot ETFs marked an incredible doubling of November’s already impressive $1 billion haul. This late surge has propelled total Ethereum ETF assets under management (AUM) to $12.12 billion, representing over 3% of ETH’s entire market capitalization.

BlackRock Leads the Pack

Leading the charge in this Ethereum ETF boom is none other than asset management giant BlackRock. Their flagship ETHA product attracted a staggering $1.4 billion in December alone, cementing its status as the top dog in the ETH spot ETF race.

The market has spoken – investors are eager for exposure to Ethereum, and spot ETFs are their vehicle of choice. We’re proud to be at the forefront of this movement with our ETHA product.

– Samara Cohen, BlackRock’s Head of ETF Markets

Fidelity and the Rest of the Pack

While BlackRock may be leading the way, they’re far from alone in riding the Ethereum ETF wave. Fidelity’s FETH product pulled in an impressive $752 million in December, further solidifying its position as a major player.

Interestingly, not every ETH ETF issuer shared in December’s spoils. Grayscale, the erstwhile king of crypto trusts, saw outflows of $274 million from its ETHE product as investors likely rotated into the more operationally efficient ETF structure.

Bitcoin ETFs Take a Breather

In contrast to Ethereum’s December to remember, Bitcoin spot ETFs saw a relative slowdown to end the year. Net inflows totaled $4.5 billion last month, a notable decline from November’s $6.4 billion.

Still, Bitcoin ETFs had a banner 2024 overall, racking up $35.24 billion in net inflows and ending the year with $105 billion in AUM – a figure representing 5.7% of Bitcoin’s total circulating supply.

What’s Next for Crypto ETFs?

With Ethereum spot ETFs ending the year with a bang and Bitcoin products taking a bit of a breather, all eyes are now on 2025 to see how this battle for crypto ETF supremacy will play out.

  • Will Ethereum’s momentum continue as the smart contract platform of choice?
  • Can Bitcoin reassert its dominance and reclaim the lion’s share of ETF inflows?
  • Might we see a new challenger emerge, with ETFs for the likes of Solana, Cardano, or Polkadot?

One thing’s for sure – the crypto ETF landscape has forever changed in 2024, and the competition between Bitcoin and Ethereum is only just beginning. As more and more investors seek regulated, insured exposure to top digital assets, expect growth and innovation in this space to continue accelerating.

Key Takeaways

  • Ethereum spot ETFs saw record inflows of $2 billion in December 2024
  • This growth doubled November’s inflows and outpaced Bitcoin ETF growth
  • BlackRock’s ETHA led the pack with $1.4 billion in December inflows
  • Fidelity, VanEck, and WisdomTree also saw strong ETH ETF growth
  • Bitcoin ETFs slowed but still grew AUM to $105 billion, 5.7% of BTC supply
  • 2025 sets up a battle for crypto ETF supremacy between BTC and ETH

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